The List of Representative Cost Drivers in the Right Column

question 151

Essay

The list of representative cost drivers in the right column below are randomized with respect to the list of functions in the left column.That is,they do not match.
$$\begin{array} { | l | l | l | l | } \hline & \text { Function } & & \text { Representative Cost Driver } \\\hline 1 . & \text { Purchasing } & \text { A. } & \text { Number of employees } \\\hline 2 . & \text { Billing } & \text { B. } & \text { Number of shipments } \\\hline 3 . & \text { Shipping } & \text { C. } & \text { Number of customers } \\\hline 4 . & \text { Computer Support } & \text { D. } & \text { Number of invoices } \\\hline 5 . & \text { Personnel } & \text { E. } & \text { Number of desktop computers } \\\hline 6 . & \text { Customer Service } & \text { F. } & \text { Number of purchase orders } \\\hline\end{array}$$ Required:
Match each business function with its representative cost driver.
$$\begin{array} { | l | l | l | } \hline & \text { Function } & \text { Insert letter of appropriate driver (A through F) } \\\hline 1 . & \text { Purchasing } & \\\hline 2 . & \text { Billing } & \\\hline 3 . & \text { Shipping } & \\\hline 4 . & \text { Computer Support } & \\\hline 5 . & \text { Personnel } & \\\hline 6 . & \text { Customer Service } & \\\hline\end{array}$$

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Definitions:

Dividend Growth

The rate at which a company's dividend payments increase over time, indicating the firm's ability to generate increasing profits.

Beta Coefficient

A measurement of a stock's volatility in relation to the overall market.

Cost of Capital

The rate of return a company must offer investors to finance its assets, reflecting the risk of investing.

Interest Rates

The segment of a loan that incurs interest charges, customarily expressed as an annual percentage of the loan's unpaid balance.